Major Rating Factors:
Fair profitability index (3.8 on a scale of 0 to 10) with operating losses during 2022 and 2023. Return on equity has been low, averaging 1.2% over the past five years. Strong long-term capitalization index (8.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Ample reserve history (9.3) that helps to protect the company against sharp claims increases.
Other Rating Factors:
Excellent liquidity (7.1) with ample operational cash flow and liquid investments. Excellent overall results on stability tests (8.2). Stability strengths include excellent operational trends and excellent risk diversification.
Stability Factors:
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Personal/comm auto (67.2%), homeowners (28.6%), comm multi (1.7%), work comp (0.4%), farmowners (0.4%), other (1.6%)
Licensed in:
IL, MI, MN, ND, NE, NY, PA, WI
Principal Investments:
Common stock (27.0%), investment grade bonds (24.5%), non investment grade bonds (2.7%), real estate (0.7%), preferred stock (0.5%), other (44.5%)
Corporate Info
Group Affiliation
Auto Club Ins Association Group
Investment Rating
--
Company Address
One Auto Club Drive
Dearborn, MI 48126
Dearborn, MI 48126
Phone Number
(313) 336-1234
NAIC Number
21202
Website
Largest Affiliates
